Investing.com — The S&P 500 notched its third weekly gain on Friday, despite a tighter close after Nvidia took a breather from its recent meltup.
At 4:00 PM ET (20:00 GMT), the price was up 15 points (0.04%), closed 0.1% lower and fell 0.2%.
Nvidia drops to the third most valuable company
NVIDIA Corporation (NASDAQ:) fell 3%, snapping an eight-week winning streak, as investors looked to take profits on the chipmaker’s runaway rally, which briefly saw Microsoft (NASDAQ:) become the most valuable company on Tuesday.
Nvidia was valued at $3.14 trillion in recent trading, just below Apple’s (NASDAQ:) valuations of $3.23 and Microsoft’s $3.33 trillion.
Despite Nvidia’s dip, general enthusiasm around artificial intelligence applications should keep underlying demand for the stock strong.
Boeing reportedly closing in on a deal to buy Spirit Aerosystems; Carmax in profit ecstasy
Shares of Boeing (NYSE:) moved higher after Reuters reported that the aircraft manufacturer is close to agreeing to the buyback of Spirit Aerosystems, its former subsidiary, which rose more than 5%.
Boeing began negotiations earlier this year to buy back one of its key suppliers, which it spun off in 2005, but ran into trouble over Spirit’s work for Boeing’s main rival Airbus.
The European group had threatened to thwart any deal that would see Boeing produce parts for its latest models.
Shares of CarMax (NYSE:) closed just above the flat line after the used car retailer’s first-quarter profit came in stronger than expected, even after a 33% decline, while revenue missed expectations.
Asana Inc (NYSE:) closed more than 15% higher after the software maker unveiled a $150 million stock buyback plan.
The manufacturing and services sectors surprised with an upward trend in June
The second index and the purchasing managers’ index for June came in higher than economists expected, underscoring the strength of the economy and that sooner or later interest rates will not be a matter of urgency. May’s figures also exceeded economists’ forecasts.
Some Fed officials have expressed caution about expecting rate cuts too early. They sought more evidence that inflation is under control before the central bank would agree to ease monetary policy.
The president of the Federal Reserve Bank of Richmond emphasized this point Thursday, emphasizing the need for more clarity on the inflation path before considering a rate cut.
“My personal opinion is, let’s get more conviction before we move,” Bakin told reporters Thursday after an event in Richmond.
Keep an eye on volatility as ‘triple witching’ beckons
Stocks are expected to have a wild end to the session because triple witching – when stock options, stock index futures and index options contracts expire on the same day – tends to be volatile as investors exit old positions and enter new ones.
Peter Nurse contributed to this story
